Malaysia’s economy ‘no longer in crisis’ as return of tourists buoys growth

The economy grew 5.6 per cent in the first quarter of the year on the back of strong domestic demand and a rebound in tourism

Experts say Malaysia may be set for a boost in trade from China after securing US$38.6 billion in investment commitments during PM Anwar’s Beijing trip

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Malaysia’s economy grew 5.1 per cent in the first quarter of the year. Photo: Bloomberg

Published: 12:53pm, 12 May 2023Updated: 6:29pm, 15 May 2023

Corrected [3:14pm, 12 May, 2023]

[3:14pm, 12 May, 2023]
This story was updated to correct Malaysia's Q1 2023 GDP growth rate and the headline inflation forecast mentioned in the fourth paragraph.

Malaysia’s economy grew 5.6 per cent between January and March, the central bank said on Friday, as a rebound in domestic consumption and tourism continued to free the economy from the malaise caused by the pandemic.

Full-year growth remained on track for between 4 per cent and 5 per cent, especially if Malaysia attracts its expected 20 million visitors, Bank Negara Malaysia (BNM) Governor Nor Shamsiah Mohd Yunus told reporters.

“The economy is no longer in crisis and has, in fact, continued to gain strength,” she said.

Headline inflation was expected to track between 2.8 per cent and 3.8 per cent, the governor added.

Exports, however, softened in the first quarter in line with worldwide trends of slowing demand amid expectations of a global economic downturn, partly driven by Russia’s invasion of Ukraine, and easing demand from top trading partner China, according to analysts.